According to Reuters, Japan’s Osaka Gas Co. has announced that it plans to expand its LNG trading activity to adjust to the market. As part of this expansion, the company said that it will try and sell surplus LNG when a short-term opportunity arises, and will also set up long-term sales agreements with other LNG purchasers.
Osaka Gas has a 1.25% minority stake in Chevron’s Gorgon LNG project in Australia, and has already sold long-term contract cargoes from the plant to Okinawa Electric Power. In addition to this, Reuters claims that, in the future, Osaka Gas may sell off LNG that it has contracted from a US project.
Although Osaka Gas is contracted to purchase 1.38 million tpy of LNG from Gorgon (once it reaches full capacity), Reuters claims that the current glut is providing purchasers with the ability to demand greater flexibility, such as being able to resell contracted cargoes on the spot market.
Edited from various sources by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/11042016/osaka-gas-plans-to-resell-surplus-lng-2260/